Hsieh Chin-ho, chairman of Caixin Media, posted on Facebook that in the past few days, foreign media outlets have reported that after the CCP’s 20th National Congress, wealthy Chinese are selling their assets. Shanghai luxury homes plummeted by 40%. Hsieh believes that “it’s too late to seek cover after hearing the sound of gunfire.” Investment and financial management must be one step ahead of others with knowledge and vision.
He said that in the past 10 years, there have been several masterpieces of high-end selling of Chinese assets. One case is Lin Shiting, who comes from the apparel and jewelry industry. In the ’90s, he invested in Shanghai with two brands Master Kong and Want Want, and established Lukang Shanghai. In 2012, his brands were bought for $300 million by a private investment fund formed by Han Dingguo. He sold it at a very high price, now it’s not even worth less than $1.5 million. Lin is currently living a happy retirement life on the coast of Jinzun, Taitung.
The classic example is Yang Zhengda of Tutor ABC. In 2018, the Venture Capital Fund of China Ping An Group was very fond of this brand and bought a part of the equity with $500 million. Yang sold high.
Around 2010, Zhuang Wenyang sold his sunscreen manufacturing company Ding Jiayi to François Coty, the No. 1 perfume brand in France, for $331 million. After three years, profits plummeted to 66 cents on the dollar and Coty discontinued the brand. Around this time, there was also a successful share transfer brand, Hsu Fu Chi, a confectionery brand, which sold 60% of its shares to Nestlé for $1.7 billion in 2011. They were big winners.
The most successful transfer in Taiwan is the sale of 36% of the shares of Sun Art Retail to Alibaba by Yin Yanliang. The selling price was $2.85 billion. Everyone thought Yin had sold it cheap, but Sun Art Retail’s share price is now only $0.17 a share and a market value of $1.72 billion. Looking back, Hsieh Chin-ho thinks that Yin was the winner in transferring his brand.
According to Hsieh, the wisest family is none other than the Li Ka-shing family. In 2014, Chinese real estate boomed. Li sold his land, and many people laughed at him for selling too early, now they know how wise he was. After the CCP’s 20th National Congress, Pan Shiyi and his wife Zhang Xin saw that the situation was not good, so they stayed in the United States. Their fates were much better than that of their good friend Ren Zhiqiang who scolded Xi Jinping as a king without clothes and was sentenced to 18 years in prison.
After the 20th National Congress closed, Hong Kong stocks fell 1,030 points the first day. Chinese companies listed in the U.S. such as Pinduoduo fell 24.65%, Weilai Automobile fell 15.7%, Alibaba had the largest drop at 81.6%, Tencent fell from $99 to $25.30. Xi Jinping emphasized at the 20th National Congress: Everyone should know that speculative profit-making in a capital market is not encouraged.
Hsieh said that in 1978, when he was in high school, witnessing Deng Xiaoping’s reform and opening up that year, Deng said, “It doesn’t matter whether a cat is white or black. As long as it can catch mice, it’s a good cat!” He even said, “Let some people get rich first! Cross the river by feeling the stones!” So he decided to go to the East Asia Institute and focus on studying Marxism-Leninism and Mao Zedong Thought. He believed that the Chinese nation would rise, and China would prosper! In 1990, he said that Taiwan would be miserable for 30 years, and China would be good for 30 years, and no one believed it.
In 2017, Hsieh said he saw China’s appeal to nationalism: My country is great! One Belt, One Road, making a turning point, Made in China 2025! Now he is more conservative about China’s future, and the CCP’s 20th National Congress has only made the trend clearer. He wrote, “The Chinese Dream Has Changed Rhythm,” which is also his account of the ups and downs of China’s economic development over the past 40 years.